Innovative Solutions in Material Technology

Innovative Solutions in Material Technology

Internal Financial Controls

Key controls consist of:

  • The preparation of comprehensive monthly financial accounts, forecasts and reviews comparing performance to budget with a summary submitted to and discussed with the Directors at regular Board meetings;

  • Hedging policies approved by the Board and operated by a hedging committee chaired by the Group Finance Director. The policy covers the Group’s exposure to and management of metal costs and foreign exchange rates as appropriate. The Board also receives regular monthly reports on such activities. Policies are reviewed periodically as circumstances dictate;

  • A Group Accounting Manual and Group Authority Manual incorporating clearly defined operating guidelines and procedures with authorisation limits set at appropriate levels requiring proper, consistent and legally compliant financial management at all levels;

  • Regular performance reviews with divisional management carried out by the Chief Executive Officer and the Group Finance Director at site;

  • An on-going annual progamme to assess the design, implementation and operational effectiveness of the internal controls structure and procedures for financial reporting based on the criteria set out by the Committee of Sponsoring Organisations of the Treadway Commission in Internal Control – Intergrated Frameworks (“COSO”), to satisfy management’s attestation under section 404 of the Sarbanes- Oxley Act;

  • Under the supervision of the internal audit function, periodic internal audits carried out by Group finance staff and internal audit co-sourcing, targeting pre-defined specific areas of financial reporting in any year on a rotational basis;

  • Self-certification divisional management on adequacy and of compliance with financial controls.

During 2014, the internal audit function was tasked with overseeing the updating of the COSO to COSO 2013.

As the Group’s shares are quoted on the New York Stock Exchange in the form of American Depository Shares the Chief Executive Officer and the Group Finance Director have carried out certain evaluations and assessments of the design and operation of our disclosure controls and procedures and the effectiveness of internal control over financial reporting as at 31 December 2013. To Download a PDF copy of the conclusions on the effectiveness of such controls click here.

Treasury and Financial Risk - The Group operates a central treasury function that controls all borrowing facilities, investment of surplus funds and management of financial risks.